Press release

18 March 2021

HeidelbergCement with strong result in 2020

− Record result despite corona-related decline in demand: result from current operations
before depreciation and amortisation increases like-for-like by around 6% to €3.7 billion
compared with the previous year
− ROIC at 7.9% – well on track to reach strategic medium-term target of “clearly above 8%”
− Adjusted earnings per share increase by €0.48 to €6.88
− Faster than expected return to progressive dividend policy: dividend proposal of €2.20
per share
− Significant drop in net debt by €1.5 billion reduces leverage ratio to 1.86x – already
clearly within the target range of 1.5x-2.0x
− Further reduction of CO2 emissions; good progress in implementing CCU/S technologies
on an industrial scale; pioneer in linking remuneration to CO2 reduction target
− Good start to the year confirms optimistic outlook for 2021

HeidelbergCement closed the 2020 financial year with top results in key figures. Result from
current operations before and after depreciation and amortisation as well as earnings per share
adjusted for non-recurring effects rose to new record levels. Thanks to the very good free cash
flow, net debt was significantly reduced. In 2020, a clear premium on the cost of capital was
earned. The dividend is to increase by 5% to €2.20 per share compared with the pre-corona year
2018.

“The entire HeidelbergCement team has demonstrated exceptional flexibility and resilience over
the past year,” said Dr. Dominik von Achten, Chairman of the Managing Board of
HeidelbergCement. “As a result, we were able to achieve top results in key figures despite an
unprecedentedly difficult year. This also applies to the important topic of sustainability, where
we have once again made significant progress. I would like to thank all our employees for their
extraordinary commitment. We have thus laid the foundation for a successful future.”

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Contact: Director Group Communications & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com
Press release

18 March 2021

Considerable increase in results despite corona-related decline in demand – ROIC rises

significantly to 7.9%
Group revenue decreased by 6.6% to €17,606 million (previous year: 18,851) in comparison with
the previous year. On a like-for-like basis, the decline amounted to 4.6%. The €601 million
decrease in HC Trading's revenue due to the decision to significantly reduce fuel trading with
third-party customers contributed significantly to this decline.

Result from current operations before depreciation and amortisation increased by 3.5% to
€3,707 million (previous year: 3,580). On a like-for-like basis, the increase amounted to 6.1%
compared to the previous year. In addition to successful price increases and lower energy costs,
significant savings from the COPE (COVID Contingency Plan Execution) action plan, launched in
February 2020, had a particularly positive impact on the result. Result from current operations
rose by 8.1% to €2,363 million (previous year: 2,186). On a like-for-like basis, the increase
amounts to 11.0%.

The additional ordinary result of €-3,678 million (previous year: €-178 million) was adversely
affected by impairment of goodwill and other non-current assets totaling €3,497. This resulted
essentially from the COVID-19-related revaluation of the HeidelbergCement Group's asset
portfolio.

Excluding the additional ordinary result and a non-recurring deferred tax income in connection
with the impairment of goodwill in 2020, the Group share of profit rose by 7.6% to €1,365 million
(previous year: 1,269). Adjusted earnings per share increased accordingly by €0.48 to €6.88
(previous year: 6.40).

In the financial year, the return on invested capital (ROIC) reached already 7.9% (previous year:
6.5%). This means, HeidelbergCement has again earned a clear premium on its cost of capital in
2020. “We have made considerable progress in 2020 in terms of return on invested capital. This
puts us on track to achieve our strategic medium-term target earlier than expected,” said Dr.
Dominik von Achten. The Group aims to achieve a ROIC of clearly above 8% by 2025.

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Contact: Director Group Comminication & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com
Press release

18 March 2021

Strong cash flow – leverage ratio already within the target range
Despite the difficult market environment, the cash inflow from operating activities of the
continuing operations increased significantly by €370 million to €3,046 million (previous year:
2,676) in the 2020 financial year. The cash inflow was used in particular for the reduction of net
debt. The considerable increase in cash inflow from operating activities was based on the good
operating business and the consistent spending discipline within the framework of the COPE
action plan.

Net debt decreased by around €1.5 billion compared to 2019 to €6.9 billion (incl. accounting for
lease liabilities). The leverage ratio decreased accordingly to 1.86x.

“As part of our COPE action plan, we were able to realise cash savings of around €1.3 billion,”
said Dr. Lorenz Näger, Chief Financial Officer of HeidelbergCement. “As a result of the strong cash
flow, we were able to reduce net debt in 2020 even more significantly than in previous years. In
this way we have already reached the target corridor for our leverage ratio of 1.5x to 2.0x and
are thus in an excellent financial position.”

Dividend leap to €2.20 per share proposed

Following the positive business trend in 2020, HeidelbergCement is resuming its progressive
dividend policy faster than expected. For the past financial year, the Managing Board and
Supervisory Board propose to the Annual General Meeting the distribution of a dividend of €2.20
(previous year: 0.60) per share. This corresponds to a payout ratio of 32.0% in relation to the
Group share of adjusted profit for the financial year. Compared to the pre-corona year 2018, the
dividend is to increase by 5%.

Leading the way in climate protection and sustainability

HeidelbergCement considers climate change as a central challenge for the future, both for the
company and for society. As one of the world's leading building materials manufacturers,
HeidelbergCement has the ambition and the innovative strength to actively shape this change in
a pioneering role.

For this reason, the company is giving high priority to the topic of sustainability. By 2025,
HeidelbergCement aims to reduce specific net CO2 emissions to below 525 kg per tonne of
cementitious material. This corresponds to a reduction of 30% compared with 1990. In 2020,
specific net CO2 emissions decreased by 2.3% to 576 kg per tonne of cementitious material
compared with the previous year (minus 23% compared with 1990).

3/6

Contact: Director Group Comminication & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com
Press release

18 March 2021

The company is also making great strides in the industrial scaling of CO2 reduction and capture
technologies. Three CO2 capture and utilisation/storage (CCU/S) projects are entering the next
phase. The CCS project in Brevik, Norway, is scheduled to start regular operations by 2024. In the
pilot project “catch4climate” at the cement plant in Mergelstetten, Germany, a demonstration
plant for CO2 capture will be built on a semi-industrial scale. With the “LEILAC 2” project, the
LEILAC technology is to be implemented on an industrial scale at HeidelbergCement’s Hanover
cement plant by 2025. HeidelbergCement is also active in other partnerships, including the HyNet
North West consortium in the United Kingdom and the collaboration with the materials
technology company Fortera at the Redding cement plant, California, United States.

To put even more emphasis on the sustainability goals, the company is consistently linking its
CO2 reduction targets to the worldwide remuneration systems. In future, full variable
remuneration can only be achieved if both the financial targets and the sustainability target are
met. The regulation will apply to all members of the Managing Board and to every bonus-eligible
employee worldwide from the 2021 financial year.

Outlook 2021
HeidelbergCement expects demand to develop positively in many markets in the 2021 financial
year. “The good start to the year confirms our optimistic outlook for 2021,” says Dr. Dominik von
Achten. “There should be tailwind from the partly massive infrastructure programmes in many
countries. The private residential construction sector should also continue to grow.”

Based on the overall economic and industry-specific outlook for the building materials industry
and the specific growth prospects for the markets in which HeidelbergCement operates, the
company expects a slight increase in revenue before exchange rate and consolidation effects in
2021. HeidelbergCement anticipates further increases in the costs of raw materials as well as
secondary cementitious materials and expects moderately rising energy costs, particularly for
electricity, diesel, and petroleum coke, on a like-for-like basis. Against this background,
HeidelbergCement anticipates a slight increase in the result from current operations before
exchange rate and consolidation effects for 2021, as well as a significant increase in ROIC to
above 8%.

Decisive for the actual extent of growth are, in particular, the further development of the corona
pandemic and progress with vaccinations, as well as local economic development and the level
of public and private investments.

4/6

Contact: Director Group Comminication & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com
Press release

18 March 2021

Group financial figures

Key financial figures January-December Q4

Like-for- Like-for-
€m 2019 2020 Variance like1) 2019 2020 Variance like1)
Sales volumes
Cement (Mt) 125.9 122.0 -3% -3% 31.4 31.9 2% 2%
Aggregates (Mt) 308.3 296.3 -4% -3% 75.0 75.5 1% 1%
Ready-mixed concrete (Mm3) 50.7 46.9 -7% -7% 12.7 12.5 -2% -2%
Asphalt (Mt) 11.3 11.0 -3% -3% 2.9 2.9 0% 2%
Income statement
Revenue 18,851 17,606 -7% -5% 4,578 4,466 -3% -1%
Result from current operations before
3,580 3,707 4% 6% 968 976 1% 16%
depreciation and amortisation2)
in % of revenue 19.0% 21.1% 21.2% 21.8%
Result from current operations 2,186 2,363 8% 11% 603 648 7% 25%
Profit/loss for the period 1,242 -2,009 376 388 3%
Group share of profit/loss 1,091 -2,139 339 349 3%
Adjusted Group share of profit2) 1,269 1,365 8%
Earnings per share in € (IAS 33) 3) 5.50 -10.78
Adjusted earnings per share in € (IAS 33) 2) 6.40 6.88 8%
4)
Dividend in € 0.60 2.20
Statement of cash flows and balance sheet
Cash flow from operating activities 2,664 3,027 363
Cash flow from investing activities -906 -949 -44
Net debt 8,410 6,893 -1,518
Leverage ratio 2.35% 1.86%

1) Adjusted for currency and consolidation effects

2) Adjusted for the additional ordinary result and a non-recurring deferred tax income in connection with the revaluation of the
asset portfolio in 2020
3) Attributable to the shareholders of HeidelbergCement AG
4) Recommendation to the Annual General Meeting

Heidelberg, 18 March 2021

5/6

Contact: Director Group Comminication & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com
Press release

18 March 2021

Financial calendar
Group annual accounts 2020 18 March 2021
Press conference 18 March 2021
First quarter 2021 results 6 May 2021
Annual General Meeting 6 May 2021
Second quarter 2021 results 29 July 2021
Third quarter 2021 results 4 November 2021

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About HeidelbergCement
HeidelbergCement is one of the world’s largest integrated manufacturers of building materials
and solutions, with leading market positions in aggregates, cement, and ready-mixed concrete.
Around 53,000 employees at more than 3,000 locations in over 50 countries deliver long-term
financial performance through operational excellence and openness for change. At the center of
actions lies the responsibility for the environment. As forerunner on the path to carbon
neutrality, HeidelbergCement crafts material solutions for the future.

Disclaimer – forward-looking statements

This document contains forward-looking statements. Such forward-looking statements do not constitute forecasts
regarding results or any other performance indicator, but rather trends or targets, as the case may be, including with
respect to plans, initiatives, events, products, solutions and services, their development and potential. Although
HeidelbergCement believes that the expectations reflected in such forward-looking statements are based on
reasonable assumptions as at the time of publishing this document, investors are cautioned that these statements are
not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a
result of a number of risks and uncertainties, many of which are difficult to predict and generally beyond the control
of HeidelbergCement, including but not limited to the risks described in the HeidelbergCement annual report available
on its website (www.heidelbergcement.com) and uncertainties related to the market conditions and the
implementation of our plans. Accordingly, we caution you against relying on forward-looking statements.
HeidelbergCement does not undertake to provide updates of these forward-looking statements.

6/6

Contact: Director Group Comminication & Investor Relations

Christoph Beumelburg, Tel.: +49 (0) 6221 481 13249
info@heidelbergcement.com
HeidelbergCement AG · www.heidelbergcement.com